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Last Updated on: 18 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

TRF Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 14, 2024, 8:27 pm

Market Cap 451 Cr.
Current Price 410
High / Low670/237
Stock P/E17.3
Book Value 63.6
Dividend Yield0.00 %
ROCE37.6 %
ROE%
Face Value 10.0
PEG Ratio0.11

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for TRF Ltd

Competitors of TRF Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
HLE Glascoat Ltd 2,548 Cr. 373582/35085.3 63.20.29 %13.1 %8.62 % 2.00
Harish Textile Engineers Ltd 30.4 Cr. 91.3102/42.7 27.80.00 %10.8 %2.98 % 10.0
Disa India Ltd 2,626 Cr. 18,05720,900/12,65256.4 1,7801.11 %25.9 %19.2 % 10.0
Cranex Ltd 86.2 Cr. 144190/47.045.9 19.50.00 %10.1 %14.9 % 10.0
Concord Control Systems Ltd 1,037 Cr. 1,7342,062/53868.8 91.10.00 %72.8 %60.3 % 10.0
Industry Average12,595.17 Cr1,938.6558.75259.200.26%20.32%16.23%5.59

All Competitor Stocks of TRF Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales15.5120.0242.1249.4841.3953.6043.2138.8933.9139.2728.7738.0037.62
Expenses26.7024.3748.7234.8026.8824.0332.7434.9623.9130.6217.0632.6932.47
Operating Profit-11.19-4.35-6.6014.6814.5129.5710.473.9310.008.6511.715.315.15
OPM %-72.15%-21.73%-15.67%29.67%35.06%55.17%24.23%10.11%29.49%22.03%40.70%13.97%13.69%
Other Income0.06-1.980.6718.6912.9930.214.302.682.5413.23-4.766.113.87
Interest8.098.018.326.208.015.905.345.503.292.973.104.503.47
Depreciation0.650.620.600.540.520.530.480.480.500.570.550.620.57
Profit before tax-19.87-14.96-14.8526.6318.9753.358.950.638.7518.343.306.304.98
Tax %0.00%0.00%0.00%-0.04%0.00%0.00%0.00%-1,065.08%0.00%0.00%63.03%0.00%0.00%
Net Profit-19.87-14.96-14.8526.6418.9753.358.957.348.7618.331.216.304.99
EPS in Rs-18.06-13.59-13.4924.2117.2448.488.136.677.9616.661.105.724.53

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales1,1001,1631,113962550432223185114127177140144
Expenses1,1291,1621,197946585575314339151131119104113
Operating Profit-290-8416-35-143-91-154-37-4583631
OPM %-3%0%-8%2%-6%-33%-41%-83%-33%-3%33%25%21%
Other Income84410112434512010-1514501718
Interest55595857484961373831251414
Depreciation12121410653332222
Profit before tax-88-27-54-39-45-152-35-185-93-23823733
Tax %4%6%16%5%-47%-12%0%0%0%-0%-8%6%
Net Profit-91-28-63-41-24-134-35-185-93-23893531
EPS in Rs-83.32-26.23-59.05-37.15-21.90-121.87-31.41-168.14-84.61-20.9480.5031.4428.01
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)69.23%-125.00%34.92%41.46%-458.33%73.88%-428.57%49.73%75.27%486.96%-60.67%
Change in YoY Net Profit Growth (%)0.00%-194.23%159.92%6.54%-499.80%532.21%-502.45%478.30%25.54%411.69%-547.63%

TRF Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:-19%
5 Years:-9%
3 Years:7%
TTM:-12%
Compounded Profit Growth
10 Years:10%
5 Years:19%
3 Years:32%
TTM:-43%
Stock Price CAGR
10 Years:0%
5 Years:32%
3 Years:47%
1 Year:53%
Return on Equity
10 Years:%
5 Years:%
3 Years:%
Last Year:%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 6:40 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital11111111111111111111111111
Reserves6645-27-60-92-212-238-417-508-531-412-39559
Borrowings588625602621561399457531494523507542109
Other Liabilities711625782730718893450445427365207151136
Total Liabilities1,3761,3061,3681,3021,1981,091680570424368314310315
Fixed Assets268282245226209194113232018171920
CWIP3000111000000
Investments300181819280116266135
Other Assets1,1021,0241,1221,058970877539547404349235225160
Total Assets1,3761,3061,3681,3021,1981,091680570424368314310315

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +113758211155-107-5621-388334
Cash from Investing Activity +-9394742251341616-5015
Cash from Financing Activity +-9-85-88-34-109-70-1164-799-300
Net Cash Flow-7-917-2831016102-22349

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-617.00-625.00-686.00-605.00-596.00-542.00-548.00-685.00-531.00-527.00-449.00-506.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days206190209242366321490433616400130258
Inventory Days154104143148243130355434554245229130
Days Payable2041622202434594011,0511,5692,3961,4731,3781,193
Cash Conversion Cycle15613213214615050-207-701-1,227-828-1,020-806
Working Capital Days91100779065146-83-81-247-207-884
ROCE %-5%0%-6%3%-0%-30%-5%-83%-58%188%38%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters34.12%34.12%34.12%34.12%34.12%34.12%34.12%34.12%34.12%34.12%34.12%34.12%
FIIs0.00%0.00%0.00%0.00%0.00%0.22%2.04%3.27%0.00%0.00%0.78%0.72%
DIIs0.02%0.02%0.02%0.02%0.02%0.02%0.02%0.02%0.02%0.02%0.02%0.02%
Government0.00%0.00%0.00%0.00%0.00%0.00%0.01%0.01%0.01%0.01%0.01%0.01%
Public65.85%65.85%65.85%65.85%65.86%65.64%63.80%62.57%65.85%65.85%65.07%65.13%
No. of Shareholders20,80320,33120,19020,07623,66223,72622,45222,29727,47628,26028,11125,413

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)31.4580.49-20.94-59.54-168.15
Diluted EPS (Rs.)31.4571.14-20.94-59.54-168.15
Cash EPS (Rs.)33.4882.32-18.74-82.12-165.14
Book Value[Excl.RevalReserv]/Share (Rs.)-348.54-2.74-267.09-246.16-162.97
Book Value[Incl.RevalReserv]/Share (Rs.)-348.54-2.74-267.09-246.16-162.97
Revenue From Operations / Share (Rs.)127.18160.94115.53103.55169.40
PBDIT / Share (Rs.)52.4997.7815.38-30.02-83.37
PBIT / Share (Rs.)50.4695.9513.19-32.51-86.37
PBT / Share (Rs.)37.8673.46-14.64-59.51-120.38
Net Profit / Share (Rs.)31.4580.49-20.94-84.61-168.15
NP After MI And SOA / Share (Rs.)31.4580.49-20.94-84.61-168.15
PBDIT Margin (%)41.2660.7513.31-28.99-49.21
PBIT Margin (%)39.6759.6211.41-31.39-50.98
PBT Margin (%)29.7745.64-12.66-57.47-71.06
Net Profit Margin (%)24.7250.01-18.12-81.71-99.26
NP After MI And SOA Margin (%)24.7250.01-18.12-81.71-99.26
Return on Networth / Equity (%)-9.02-2937.260.000.000.00
Return on Capital Employeed (%)35.7282.77-7.4817.4078.08
Return On Assets (%)11.1827.11-6.26-21.93-32.45
Long Term Debt / Equity (X)-0.24-27.80-0.27-0.15-0.20
Total Debt / Equity (X)-0.31-27.80-1.01-0.89-1.49
Asset Turnover Ratio (%)0.430.510.340.230.31
Current Ratio (X)1.741.410.520.550.71
Quick Ratio (X)1.701.360.480.490.62
Inventory Turnover Ratio (X)1.990.670.450.410.59
Interest Coverage Ratio (X)4.174.350.55-0.86-2.45
Interest Coverage Ratio (Post Tax) (X)3.864.540.47-0.94-2.54
Enterprise Value (Cr.)490.88237.72422.78315.47251.30
EV / Net Operating Revenue (X)3.511.343.332.771.35
EV / EBITDA (X)8.502.2124.97-9.55-2.74
MarketCap / Net Operating Revenue (X)3.170.991.180.820.30
Price / BV (X)-1.16-58.50-0.50-0.34-0.31
Price / Net Operating Revenue (X)3.170.991.180.820.30
EarningsYield0.070.50-0.15-0.99-3.26

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of TRF Ltd as of November 18, 2024 is: 168.34

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 18, 2024, TRF Ltd is Overvalued by 58.94% compared to the current share price 410.00

Default values used*: Default value of 15% for ROE is used

Intrinsic Value of TRF Ltd as of November 18, 2024 is: 433.79

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 18, 2024, TRF Ltd is Undervalued by 5.80% compared to the current share price 410.00

Default values used*: Default value of 15% for ROE is used

Last 5 Year EPS CAGR: 157.69%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -11.08, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -148.17, which is a positive sign.
  1. The stock has a low average ROCE of 3.50%, which may not be favorable.
  2. The company has higher borrowings (504.54) compared to reserves (-209.38), which may suggest financial risk.
  3. The company has not shown consistent growth in sales (235.15) and profit (-45.31).

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in TRF Ltd:
    1. Net Profit Margin: 24.72%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 35.72% (Industry Average ROCE: 20.32%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: -9.02% (Industry Average ROE: 16.23%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 3.86
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.7
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 17.3 (Industry average Stock P/E: 58.75)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: -0.31
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

TRF Ltd. is a Public Limited Listed company incorporated on 20/11/1962 and has its registered office in the State of Jharkand, India. Company’s Corporate Identification Number(CIN) is L74210JH1962PLC000700 and registration number is 000700. Currently company belongs to the Industry of Engineering - Heavy. Company’s Total Operating Revenue is Rs. 127.14 Cr. and Equity Capital is Rs. 11.00 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Engineering - Heavy11, Station Road, Jamshedpur Jharkand 831007comp_sec@trf.co.in
http://www.trf.co.in
Management
NamePosition Held
Ms. Samita ShahChairperson
Mr. Umesh Kumar SinghManaging Director
Mr. Sanjib NandaNon Exe.Non Ind.Director
Mr. Akshay KhullarNon Exe.Non Ind.Director
Mrs. Ramya HariharanIndependent Director
Mr. Krishnava Satyaki DuttIndependent Director
Dr. Ansuman DasIndependent Director
Dr. Pingali VenugopalIndependent Director
Dr. Sougata RayIndependent Director

FAQ

What is the latest intrinsic value of TRF Ltd?

The latest intrinsic value of TRF Ltd as on 18 November 2024 is ₹168.34, which is 58.94% lower than the current market price of ₹410.00.

What is the Market Cap of TRF Ltd?

The Market Cap of TRF Ltd is 451 Cr..

What is the current Stock Price of TRF Ltd as on 18 November 2024?

The current stock price of TRF Ltd as on 18 November 2024 is ₹410.

What is the High / Low of TRF Ltd stocks in FY 2024?

In FY 2024, the High / Low of TRF Ltd stocks is 670/237.

What is the Stock P/E of TRF Ltd?

The Stock P/E of TRF Ltd is 17.3.

What is the Book Value of TRF Ltd?

The Book Value of TRF Ltd is 63.6.

What is the Dividend Yield of TRF Ltd?

The Dividend Yield of TRF Ltd is 0.00 %.

What is the ROCE of TRF Ltd?

The ROCE of TRF Ltd is 37.6 %.

What is the ROE of TRF Ltd?

The ROE of TRF Ltd is %.

What is the Face Value of TRF Ltd?

The Face Value of TRF Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in TRF Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE